Lake of the Ozarks Solid Waste Management Found Unacceptable by Mo. Dept. of Natural Resources

First posted on 08-21-2008

The Missouri Department of Natural Resources has determined Region T—Lake of the Ozarks Solid Waste Management District’s response to recent performance audit findings is unacceptable. In 2005, the Solid Waste Management Law changed giving the department new authority to conduct performance audits of solid waste management district grant funds at least once every three years if audit funds are available to the department. These audits are intended to determine whether districts are exercising appropriate control over district grant funds, which are generated through landfill tonnage fees collected at permitted solid waste facilities in Missouri, and district compliance with state regulations governing use of these public funds.

The department provided Region T’s executive board with 60 days to respond and take corrective action. To date, the district has failed to take appropriate action to bring the district back into compliance with the law.

Region T’s performance audit contained the following significant findings:

* Failure to comply with provisions of the Sunshine Law.
* Administration cost allocations were based on estimates and were not supported by time sheets or other documented analyses of time spent on district grant functions, resulting in questioned costs of $38,722.
* Financial assistance agreements had expired, and the district continued reimbursing expenditures resulting in questioned costs of $1,756.
* Failure to hold the District Council and Executive Board meetings in the frequency prescribed by state law and the district’s bylaws.
* Failure to comply with grant application evaluation requirements.
* Failure to maintain surety bond coverage on individuals involved in the receipt and disbursement of public monies.
* Bank statement reconciliations were not independently reviewed to ensure their accuracy and verify their propriety.
* Failure to maintain a fixed asset inventory on grant funded equipment.
* Failure to submit timely project progress and audit reports.

The department’s Solid Waste Management Program is requiring Region T to repay nearly $36,000 in grant funds awarded to the district’s administrative contractor, Lake of the Ozarks Council of Local Governments. These funds were awarded more than two years ago for educational, scrap tire and illegal dumping projects that were never implemented. As required by the district grant regulations, these funds will be reallocated to the other solid waste management districts in Missouri that are in compliance and have addressed any audit deficiencies. The Solid Waste Management Program is currently monitoring Region T’s progress on two other tire collection projects. These projects must be implemented within a reasonable time period. As an alternative, Region T can elect to terminate the tire collection projects and make the funds available to other grant applicants within Region T’s three county areas.

“My staff met with Region T’s executive board on June 5 to deliver the audit report. The department gave the executive board 60 days to adequately address these issues and their efforts have proven inadequate. This minimal effort on the district’s part is not acceptable,” said Department Director Doyle Childers. “We want to send a clear message to Region T’s executive board. It must address the district’s critical operational shortcomings without delay.”

The Solid Waste Management Program has notified the district it is being placed on “high risk” status effective Sept. 1.Compliance deadlines have been provided, and, if not met, the district’s administrative funds may be withheld.

Region T is made up of Camden, Laclede and Miller counties. For the year ended June 30, 2007, the district received $95,000 in district grant funds and in 2008 has received $72,683. The districts use the solid waste management funds for recycling, reuse and resource recovery project grants to divert solid waste from landfills.

The performance audit report, the department’s resolution plan and the district’s response is available on the department’s Web site at http://www.dnr.mo.gov/env/swmp/swmd/DistrictT.htm.